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Welcome to stocktradinadvisor. Here You can invest your money securely in stock market through us to get high return and see your wealth grow. You can also get advice for trading in equity and commodity with 100% accuracy. You can invest through us through payumoney which is 100% secured. We are professionally managed stock trader, advisor, and investor. We give highest possible return. We trade in shares, commodities with 100% accuracy by performing technical and fundamental analysis. We trade in stock market through strategies which are long established and back tested.
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100% Sure shot strategy for stock trading

One of the best stock trading strategy is to use the stochastic or stochastic oscillator, RSI, and stochastic momentum index in combination. Whenever %K crosses over the %D of stochastic momentum index from above or below, enter the trade. See also at that time stochastic and rsi are also in sync and you do not… Continue reading 100% Sure shot strategy for...

One of the best stock trading strategy is to use the stochastic or stochastic oscillator, RSI, and stochastic momentum index in combination. Whenever %K crosses over the %D of stochastic momentum index from above or below, enter the trade. See also at that time stochastic and rsi are also in sync and you do not necessarily follow the overbought or oversold condition. You will make 100% sure shot profit. Choose the time frame you want to trade, intraday, swing trading, monthly, yearly.  For intraday trading in equity, choose 5mins time frame and for intraday commodity trading, keep the time frame 15 mins. No other indicator is stronger than this. There is scientific reason behind it. All the variables are smoothed exponentially. Whatever the condition of other indicators and whatever the market condition, you will only make profit. You can backtest it. This strategy works well in all segments, equity, commodity, futures, options, currency.

BREAKING DOWN ‘Stochastic Oscillator’

The stochastic oscillator is calculated using the following formula:

%K = 100(C – L14)/(H14 – L14)

Where:

C = the most recent closing price

L14 = the low of the 14 previous trading sessions

H14 = the highest price traded during the same 14-day period

%K= the current market rate for the currency pair

%D = 3-period moving average of %K

The general theory serving as the foundation for this indicator is that in a market trending upward, prices will close near the high, and in a market trending downward, prices close near the low. Transaction signals are created when the %K crosses through a three-period moving average, which is called the %D.

History

The stochastic oscillator was developed in the late 1950s by George Lane. As designed by Lane, the stochastic oscillator presents the location of the closing price of a stock in relation to the high and low range of the price of a stock over a period of time, typically a 14-day period. Lane, over the course of numerous interviews, has said that the stochastic oscillator does not follow price or volume or anything similar. He indicates that the oscillator follows the speed or momentum of price. Lane also reveals in interviews that, as a rule, the momentum or speed of the price of a stock changes before the price changes itself. In this way, the stochastic oscillator can be used to foreshadow reversals when the indicator reveals bullish or bearish divergences. This signal is the first, and arguably the most important, trading signal Lane identified.

See how the natural gas moves with this strategy.

NATURAL GAS STOCHASTIC

jswsteel

See how the jswsteel moves with this strategy. In this strategy stochastic momentum index is the key indicator. Don’t trade with the crossover of stochastic only.

 

Safely invest in stock market for guaranteed high return or get advice on trading with 100% accuracy through http://www.stocktradingadvisor.wordpress.com.

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Why invest in stock market and why through www.stocktradingadvisor.wordpress.com

A simple way to understand macro-economic growth is to imagine the national economy as one vast business conglomerate. Like any business, the Gross Domestic Product must be fuelled by investment and consumption. In India, both investment and consumption are largely driven by households. Household consumption accounted for 59.4% of the GDP in 2016, according to… Continue reading Why invest in stock market and why through...

imagesA simple way to understand macro-economic growth is to imagine the national economy as one vast business conglomerate. Like any business, the Gross Domestic Product must be fuelled by investment and consumption.

In India, both investment and consumption are largely driven by households. Household consumption accounted for 59.4% of the GDP in 2016, according to the World Bank. In comparison, government expenditure was just 11.65% of the GDP.

Total savings, which are vital for investment, amounted to 32.5% of the GDP, of which household savings alone contributed 23.6% to the GDP, according to NITI Aayog. Private companies’ savings contributed 8.5% to the GDP.

What do households invest in? A combination of physical assets such as real estate, gold, diamonds, precious metals, and financial assets such as fixed deposits, debentures, equity, mutual funds.

The growth potential of physical assets is less but they are also less risky. They can fuel growth to only some extent. Real estate development, for example, means construction activity and off take of cement, paint and such. A property can generate rental income, or the owner saves rent. Gold, though, is just a store of value rather than a driver of growth.

Financial investments can fuel higher growth and yield higher returns, but they are riskier. Their value can collapse dramatically and there is no tangible asset left after a crash. If a company goes bankrupt, its shares are worthless and any debt it owes may be unrecoverable. Of course, real estate can also collapse and so can gold, but there is a tangible asset left that could recover its value, or be of some residual use.

The Reserve Bank of India collects and examines household savings data, and its last two Annual Reports show household asset-allocation patterns have changed. A much larger share of household savings is now being parked in financial assets. Also, households are borrowing more.

The RBI’s Preliminary Estimates indicate that household financial savings rose to 8.1% of the Gross National Disposable Income – which is the Gross National Product plus secondary income from abroad – in 2016-’17. This followed a rise in financial savings to 7.8% in 2015-’16 and 7.2% in 2014-’15. In absolute terms, household financial savings were Rs 12,82,600 crore in 2014-’15,
Rs 15,14,200 crore in 2015-’16 and and Rs 18,20,400 crore in 2016-’17. That is a growth of roughly 22% compounded for three years.

In the same period, while currency and Provident Fund holdings declined a little, investments in fixed deposits, insurance, and shares and debentures rose. Bank deposits rose from Rs 6,20,000 crore in 2015-’16 to Rs 10,95,700 crore in 2016-’17 while exposure to stocks and debentures rose from Rs 41,300 crore to Rs 1,82,500 crore. Alongside, household financial liabilities rose on account of increase in retail loans. The total financial liabilities of households rose from Rs 4,31,700 crore in 2015-’16 to Rs 5,74,700 crore in 2016-’17.

Safe savings?

The big jump has been in mutual funds. Indian households held Rs 9,80,000 crore in mutual funds by July 2017, a year-on-year increase of 40%. Households accounted for 48% of all mutual fund assets, 3% more than a year ago. Total fund assets under management swelled by Rs 4,80,000 crore, an increase of 31% over the previous year. This means households invested over Rs 2,80,000 crore in mutual funds between June 2016 and June 2017. Household investments in equity schemes jumped by 50% in the same period.

Most new investors were based in Class B and Class C cities, where investments in mutual funds rose by 40%. Small town investors also committed 55% of their assets to equity.

This shift to investing in financial products is perhaps a consequence of low returns on physical assets. Until 2014, the average Indian household held 77% of its total assets in real estate, 11 % in gold, 7% in durable goods such as a vehicle or inventory for a shop, and just 5% in financial assets.

But falling real estate prices led to a decline in physical savings from 12.4% of the Gross National Disposable Income in 2014-’15 to 10.7% in 2015-’16. Real estate value has declined, or stagnated. Gold prices too have been stable rather than bullish.

As real estate has declined, so have nominal interest rates on “safe” fixed bank deposits. This makes fixed deposits look less attractive even though the real return is better than it was. The real return from debt is the interest received minus the inflation rate. While fixed deposit returns have fallen from 8.5% to under 6.5% over the past three years, inflation has fallen more, from 9% to under 4%. This means that returns from debt are actually beating inflation now, but try explaining that to the average householder!

Initial returns after shifting to financial products must have been gratifying for household investors. The Nifty rose by about 14% between June 2016 and June 2017 and mid-caps returned much more than that. While mutual funds have focused on heavyweight listed companies, retail investors buying directly into equity have pushed up mid-cap and small-cap prices.

Households’ willingness to park savings in financial assets is welcome: it fuels economic growth. On the flip side, they are more exposed to scams, defaults and stock market crashes. The rising volume of non-performing assets indicates that corporate India is struggling to service debt obligations, which means corporate debt is high-risk.

If the stock market collapses or debt-ridden firms go bankrupt, the average household stands to lose a far larger chunk of savings. What’s more, higher financial liabilities will mean lower future savings because the debts must be serviced. The shift to investing in financial assets, therefore, is a double-edged sword.

Mutual funds add Rs 5.4 trillion in 2017; AUM crosses Rs 22 trillion

Mutual fund industry saw its assets base jump to over Rs 22 lakh crore in 2017, adding more than Rs 5.4 lakh crore to the kitty, on strong participation from retail investors and investor awareness initiatives.

Moreover, fund houses are expecting similar ‘healthy’ growth in AUM to continue in the new year too as the penetration levels of mutual funds are still very low in the country.

Total AUM of all the fund houses put together soared by over Rs 5.4 lakh crore,  ..

The spike in bank deposits and consequent decline in interest rates following demonetisation on November 8, 2016 have helped mutual funds.

Besides, Amfi Chairman A Balasubramanian attributed the impressive surge in assets base to ‘aggressive’ investor awareness campaign both at the individual players’ level as well as at an industry level.

“The ‘Mutual Fund Sahi Hai’ campaign has created huge impact in building confidence among investors. Mutual fund distributors  ..

Why invest through stocktradingadvisor

  • When you invest in shares/stocks through any broker, they are only concerned about their brokerage and does not bother about your profit and return on investment. They put your money on shares/stocks on the basis of their expert analysis but they are not obliged to give you profit. If you incur loss, you can not hold them liable. My personal experience is their tips and advises are more loss making than profit making.
  • But as we do trade ourselves in the stock market, we put your money in trade as we put our own money and strictly concerned about the profit. We do not charge any brokerage or fees. We are committed to give you a certain percentage of return on your investment which will be much higher than investing through broker if you consider the brokerages and occasional losses. 
  • No one can give you guaranteed return on investment in stock market but we do.
  • We are professionally managed stock trader, advisor, and investor. We give highest possible return.
  • We trade in shares, commodities with 100% accuracy by performing technical and fundamental analysis.  We trade in stock market through strategies which are long established and back tested.
  • Your money is completely secured as it is secured by payumoney payment gateway and we enter into legal contract. Just enter into the customer’s details field of payumoney while making payment the purpose of payment and the percentage of return and tenure of investment as mutually be agreed which itself be a legal document. payumoney is linked to our bank account which in turn is linked to our details like address , phone, aadhar, pan etc. Apart from this we can enter into any legal contract in any manner as you wish.
  • In case of of tips or advice, we return your money back if any of the call does’nt make profit after attaining the /buy/sell level at which calls will be given.
  • In case of investment , we give guaranteed high return on investment which will be far more greater than any investment through legal contract. Your investment will be completely secured.

Thanks and happy trading and investing with stocktradingadvisor

 

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HOW TO TRADE WITH CANDLE STICK PATTERN

    The Major Signals DOJI  Recognition: The open and close are the same or very close to the same. Pattern Psychology: The Bulls and the Bears are conflicting. This is an alert to investors to take heed for possible trend reversal.     BULLISH ENGULFING Recognition: The body of the second day completely engulfs the body of the first… Continue reading HOW TO TRADE WITH CANDLE...

 

 

The Major Signals

DOJI  Recognition: The open and close are the same or very close to the same.

Pattern Psychology: The Bulls and the Bears are conflicting. This is an alert to investors to take heed for possible trend reversal.

 

 

BULLISH ENGULFING Recognition: The body of the second day completely engulfs the body of the first day. Shadows are not a consideration.

Pattern Psychology: This pattern suggests the Bulls are stepping in with force, suggesting prices will move up.

 

 

BEARISH ENGULFING

Recognition: The body of the second day completely engulfs the body of the first day. Shadows are not a consideration.

Pattern Psychology: This shows the Bears are overwhelming the Bulls, suggesting prices will move down.

 

HAMMERS and HANGING-MAN

Recognition: The lower shadow (or tail) should be at least two times the length of the body. The color of the body is not important although a black body has slightly more Bearish indications and a white body has slightly more Bullish indications.

Pattern Psychology: This pattern at the bottom of a down trend is called a Hammer. This pattern at the top of an uptrend is called a Hanging-Man

 

PIERCING PATTERN

Recognition: A two candle pattern, the body of the first candle is black and the body of the second candle is white. The white day opens lower, under the trading range of the previous day. The price closes above the 50% level of the black body.

Pattern Psychology: After a strong downtrend, the atmosphere is Bearish but before the end of the day the Bulls step in and price closes near the high of the day.

 

 

DARK CLOUD

Recognition: A two candle pattern, the body of the first candle is white and the body of the second candle is black. The black day opens higher, above the trading range of the previous day. The price closes below the 50% level of the white body.

Pattern Psychology: After a strong uptrend, the atmosphere is Bullish but before the end of the day the Bears step in and price closes near the low of the day.

 

BULLISH HARAMI

Recognition: A two candle pattern forming in a down trending price pattern. The body of the first candle is the same color as the current trend and should be a long black candle. The body of the second candle is white and opens and closes within the body of previous day’s candle.

Pattern Psychology: After a strong downtrend the Bulls step in and open the price higher than the previous day’s close. This concerns the Bears and the shorts start covering their postions. A strong day after that would convince everybody that the trend may be in a reversal.

 

 

BEARISH HARAMI

Recognition: A two candle pattern forming in an uptrending price pattern. The body of the first candle is the same color as the current trend and should be a long white candle. The body of the second candle is black and opens and closes within the body of the previous day’s candle.

Pattern Psychology: After a strong uptrend the Bears step in and open the price lower than the previous day’s close. The price finishes lower for the day and the Bulls are concerned and begin taking their profits.

 

 

MORNING STAR

Recognition: A three candle pattern at the bottom of a downtrend.The body of the first candle is black, confirming the current downtrend. The second candle is an indecisive formation. The third candle is white and should close at least halfway up the black candle.

Pattern Psychology: After an apparant downtrend the Bulls step in and open the price higher than the previous day’s close. The price finishes higher for the day and the Bears are concerned and begin covering their short positions.

 

 

EVENING STAR

Recognition: A three candle pattern at the top of an uptrend. The body of the first candle is white, confirming the current uptrend. The second candle is an indecisive formation. The third candle is black and should close at least halfway down the white candle.

Pattern Psychology: After an apparant uptrend the Bears step in and open the price lower than the previous day’s open. The price finishes lower for the day and the Bulls are concerned and begin selling to take their profits.

 

Kicker Signals
Bearish and Bullish

Recognition: The first day’s open and the second day’s open are the same BUT the price movement is in opposite directions.

Pattern Psychology: The Kicker Signal demonstrates a dramatic change in investor sentiment. The longer the candles, the more dramatic the price reversal.

 

 

SHOOTING STAR

Recognition: One candle pattern appearing in an uptrend. The shadow (or tail) should be at least two times the length of the body. The color of the body is not important, although a black body has slightly more Bearish indications.

Pattern Psychology: After a strong uptrend the Bulls appear to still be in control with price opening higher, but by the end of the day the Bears step in and take the price back down to the lower end of the trading range. Lower trading the next day reinforces the probability of a pullback.

 

 

Inverted Hammer

Recognition: The upper shadow should be at least two times the length of the body. The real body is at the lower end of the trading range. There should be no lower shadow or a very small lower shadow.

Pattern Psychology: After a downtrend has been in effect, the atmosphere is Bearish. The price opens and trades lower but before the end of the day, The Bulls step in and take the price back up. A higher open or a white candle the next day reinforces buying.

 

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Day Trading Strategies for Beginners

Day Trading Tips You Need to Know 1) Knowledge is Power Not just knowledge of basic trading procedures, but of the latest stock market news and events that affect stocks – the Fed’s plans for interest rates, the economic outlook, etc. Do your homework; make a wish list of stocks you’d like to trade, keep… Continue reading Day Trading Strategies...

Day Trading Tips You Need to Know
1) Knowledge is Power

Not just knowledge of basic trading procedures, but of the latest stock market news and events that affect stocks – the Fed’s plans for interest rates, the economic outlook, etc. Do your homework; make a wish list of stocks you’d like to trade, keep yourself informed about the selected companies and general markets, scan a business newspaper and visit reliable financial websites on a regular basis.

2) Set an Amount Aside

Assess how much capital you’re willing to risk on each trade (most successful day traders risk less than 1-2% of their account per trade). Set aside a surplus amount of funds that you can trade with and are prepared to lose (which may not happen) while keeping money for your basic living, expenses, etc.

3) Set Aside Time, Too

Day trading requires your time – most of your day, in fact. Don’t consider it as an option if you have limited hours to spare. The process requires a trader to track the markets and spot opportunities, which can arise any time during the trading hours. Moving fast is key.

4) Start Small

As a beginner, it is advisable to focus on a maximum of one to two stocks during a day trading session. With just a few stocks, tracking and finding opportunities is easier.

5) Avoid Penny Stocks

Of course, you’re looking for deals and low prices. But keep away from penny stocks. These stocks are highly illiquid and chances of hitting a jackpot are often bleak.

6) Time Those Trades

Many orders placed by investors and traders begin to execute as soon as the markets open in the morning, contributing to price volatility. A seasoned player may be able to recognize patterns and pick appropriately to make profits. But as a newbie, it is better to just read the market without making any moves for the first 15-20 minutes. The middle hours are usually less volatile while the movement begins to pick up towards the closing bell. Though the rush hours offer opportunities, it’s safer for beginners to avoid them at first.

7) Cut Losses with Limit Orders

Decide what type of orders you will use to enter and exit trades. Will you use market orders or limit orders? When you place a market order, it is executed at the best price available at the time; thus, no “price guarantee.” A limit order, meanwhile, does guarantee the price, but not the execution. Limit orders help you trade with more precision wherein you set your price (not unrealistic but executable) for buying as well as selling.

8) Be Realistic About Profits

A strategy doesn’t need to win all the time to be profitable. Many traders only win 50% to 60% of their trades. The point is, they make more on their winners than they lose on their losers. Make sure that the risk on each trade is limited to a specific percentage of the account, and that entry and exit methods are clearly defined and written down.

 9) Stay Cool…

There are times when the stock markets test your nerves. As a day trader you need to learn to keep greed, hope and fear at bay. Decisions should be governed by logic and not emotion.

10) …And Stick to The Plan

Successful traders have to move fast – but they don’t have to think fast. Why? Because they’ve developed a trading strategy in advance, along with the discipline to hold to that strategy. In fact, it is far more important to follow your formula closely than to try to chase profits. There’s a mantra among day-traders: “Plan your trades, then trade your plan.”

Day Trading Like a Pro: Deciding What to Buy

Day traders seek to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures and options are traded as well), usually leveraging large amounts of capital to do so. In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume.

  • Liquidity allows you to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the expected price of a trade and the actual price).
  • Volatility is simply a measure of the expected daily price range—the range in which a day trader operates. More volatility means greater profit or loss.
  • Trading volume is a measure of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, an increase in the volume of a stock is a harbinger of a price jump, either up or down.

Once you know what kinds of stocks (or other asset) you are looking for, you need to learn how to identify entry points – that is, at what precise moment you’re going to invest. There are three tools you can use to do this:

  • Real-time news services. News moves stocks; subscribing to such services tell you when potentially market-shaking news comes out.
  • ECN/Level 2 quotesECNs are computer-based systems that display the best available bid and ask quotes from multiple market participants, and then automatically match and execute orders. Level 2 is a subscription-based service that provides real-time access to the NASDAQ order book composed of price quotes from market makers registered in every NASDAQ-listed and OTC Bulletin Board securities. Together, they can give you a sense of orders being executed in real time.
  • Intraday candlestick charts. Candles provide a raw analysis of price action. (More on these later.)

Day Trading Like a Pro: Deciding When to Sell

Before you actually jump into the market, you have to have a plan for getting out. Identifying the point at which you want to sell an investment is called Identifying a price target. Some of the most common price target strategies are:

 

Strategy Description
Scalping Scalping is one of the most popular strategies. It involves selling almost immediately after a trade becomes profitable. The price target is whatever figure that translates into “you’ve made money on this deal.”
Fading Fading involves shorting stocks after rapid moves upward. This is based on the assumption that (1) they are overbought, (2) early buyers are ready to begin taking profits and (3) existing buyers may be scared out. Although risky, this strategy can be extremely rewarding. Here the price target is when buyers begin stepping in again.
Daily Pivots This strategy involves profiting from a stock’s daily volatility. This is done by attempting to buy at the low of the day and sell at the high of the day. Here the price target is simply at the next sign of a reversal, using the same patterns as above.
Momentum This strategy usually involves trading on news releases or finding strong trending moves supported by high volume. One type of momentum trader will buy on news releases and ride a trend until it exhibits signs of reversal. The other type will fade the price surge. Here the price target is when volume begins to decrease.

In most cases, you’ll want to exit an asset when there is decreased interest in the stock as indicated by the Level 2/ECN and volume.

Day Trading Pro Tips: Charts and Patterns

Previously, we mentioned three tools for determining entry points – that is, deciding the opportune moment you’re going to buy a stock (or whatever asset you’re trading). The most technical are intraday candlestick charts. We’ll focus on these factors:

  • Candlestick patterns, including engulfings and dojis.
  • Technical analysis, including trendlines and triangles.
  • Volume, as in increasing or decreasing volume.

There are many candlestick setups that we can look for to find an entry point. If properly used, the doji reversal pattern (highlighted in yellow in Figure 1) is one of the most reliable ones.

First, we look for a volume spike, which will show us whether traders are supporting the price at this level. Note that this can be either on the doji candle or on the candles immediately following it.typically, we will look for a pattern like this with several confirmations:

  • Second, we look for prior support at this price level. For example, the prior low of day (LOD) or high of day (HOD).
  • Finally, we look at the Level 2 situation, which will show us all the open orders and order sizes.

If we follow these three steps, we can determine whether the doji is likely to produce an actual turnaround and we can take a position if the conditions are favorable.

Day Trading Pro Tips: How to Limit Losses

Trading on margin means that you are borrowing your investment funds from a brokerage firm. When you trade on margin (and bear in mind that margin requirements for day trading are high), you are far more vulnerable to sharp price movements. Margins help to amplify the trading results – not just of profits, but of losses as well, if a trade goes against you. Therefore, using stop-losses, which are designed to limit losses on a position in a security, is crucial when day trading.

A stop loss order controls risk. For long positions a stop loss can be placed below a recent low, or for short positions above a recent high. It can also be based on volatility: For example, if a stock price is moving about $0.05 a minute, then you may place a stop loss $0.15 away from your entry in order to gives the price some space to fluctuate before it moves (hopefully) in your anticipated direction. Define exactly how you will control the risk on the trades. In the case of a triangle pattern, for example, a stop loss can be placed $0.02 below a recent swing low if buying a breakout, or $0.02 below the pattern. (The $0.02 is arbitrary; the point is simply to be specific.)

One strategy is to set two stop losses:

  1. A physical stop-loss order placed at a certain price level that suits your risk tolerance. Essentially, this is the most money you can stand to lose.
  2. A mental stop-loss set at the point where your entry criteria are violated. This means that if the trade makes an unexpected turn, you’ll immediately exit your position.

However you decide to exit your trades, the exit criteria must be specific enough to be testable – and repeatable.

The Bottom Line

Day trading is a difficult skill to master, requiring as it does time, skill and discipline. Many of those who try it fail. But the techniques and guidelines described above can help you create a profitable strategy, and with enough practice and consistent performance evaluation, you can greatly improve your chances of beating the odds. There is one final rule we should mention: Set a maximum loss per day that you can afford to withstand – both financially and mentally. Whenever you hit this point, take the rest of the day off. Stick to your plan and your perimeters. After all, tomorrow is another (trading) day.

 

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BEST TECHNICAL INDICATORS FOR INTRADAY

Traders only use Most Accourate intraday trading indicators for Intraday Trading Setup. Whether a trader is a beginner or an experienced, indicators are important. It helps you plan your trading for the maximum returns. Referring the intraday trading tips, charts, and indicators is a common way. Day trading indicators minimize the risk level. The...

Traders only use Most Accourate intraday trading indicators for Intraday Trading Setup. Whether a trader is a beginner or an experienced, indicators are important. It helps you plan your trading for the maximum returns. Referring the intraday trading tips, charts, and indicators is a common way. Day trading indicators minimize the risk level. The indicators provide useful information on…

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HOW TO CHOOSE SHARES/ STOCKS BEFORE INVESTING

FIRSTLY MAKE AN FUNDAMENTAL ANALYSIS. IT IS MADE BOTH FROM MACRO AND MICRO ECONOMIC POINT OF VIEW. IN THE MACRO ECONOMY , YOU HAVE TO FIND IN WHICH ECONOMIC CYCLE THE COUNTRY’S ECONOMY IS IN . IS IT GROWING PHASE, DECREASING PHASE, SATURATION PHASE OR RECESSION. THEN YOU HAVE TO DO THE SECTOR WISE ANALYSIS,… Continue reading HOW TO CHOOSE SHARES/ STOCKS...

FIRSTLY MAKE AN FUNDAMENTAL ANALYSIS. IT IS MADE BOTH FROM MACRO AND MICRO ECONOMIC POINT OF VIEW. IN THE MACRO ECONOMY , YOU HAVE TO FIND IN WHICH ECONOMIC CYCLE THE COUNTRY’S ECONOMY IS IN . IS IT GROWING PHASE, DECREASING PHASE, SATURATION PHASE OR RECESSION.

THEN YOU HAVE TO DO THE SECTOR WISE ANALYSIS, WHICH SECTOR AT PRESENT AND FUTURE HAS LARGEST GROWTH OR GROWTH POTENTIAL. IS IT STEEL, CEMENT, IT OR CHEMICALS, ENGINEERING , BANKING AND UNDER WHICH SECTOR YOUR SELECTED COMPANY COMES AND WHAT IS IT’S POTENTIAL AS PER RANKING MADE IN INDUSTRY/SECTORWISE ANALYSIS.

THEN MAKE AN ASSESSMENT OF THE COMPANY. SEE THEIR BALANCE SHEET AND PROFIT AND LOSS ACCOUNT. CALCULATE THE DIVIDEND YIELD/PAYOUT RATIO, EARNING PRICE PER SHARE, PROFIT EARNING RATIO, PROFITABILITY INDEX, RETURN ON INVESTMENT.

THEN MAKE THE TECHNICAL ANALYSIS. IT IS CARRIED OUT FOR CERTAIN TIME FRAME. ARE YOU DAY TRADER, SWING TRADER OR INVESTOR. FIND OUT THE 50/200 PERIOD MOVING AVERAGE FOR LONG TERM TREND AND 5/20 EXPONENTIAL MOVING AVERAGE FOR SHORT TERM TREND. ALSO FIND THE PIVOT POINT, RSI, STOCHASTIC, MACD, BOLLINGER BAND, ELLIOT WAVE, SUPERTREND, GAN CALCULATION FOR THE CHOSEN TIME FRAME. EVERYONE HAS CERTAIN STRATEGY WHICH IS A COMBINATION OF THE TWO, THREE OR MORE OR ALL OF THE ABOVE. FOR DAY TRADING YOU ALSO HAVE TO FIND OUT THE DAILY VOLATILITY AND LIQUIDITY OF THE STOCKS. SEE THE PERCENTAGE MOVEMENT AND DAILY VOLATILITY REPORT FROM NSEINDIA OR ANY OTHER SITES. SOME SITES ALSO PROVIDE THE DELIVERY INTEREST/OPEN INTEREST OF STOCKS/SHARES, PRICE INCREASING WITH VOLUME INCREASING OR VICE VERSA, PRICE INCREASING AND VOLUME DECREASING OR VICE VERSA. YOU HAVE TO ANALYZE ALL THESE THINGS

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